Ford Case Analysis Summary
Current Situation
Ford has a bad financial condition and brand image. The market share of Ford was declined every year. The global economic also effected its sales. The high fuel cost influence buyers to buy the fuel saver car. Ford does not have specific performance in recent year. Ford competed with more and more foreign competitors and lost its market share. Right now Ford is facing the finance problem of negative net income in 2006 and had a very low cash flow. Ford decided to gain the profit by restricting but it still loses money.
Analysis of Strategic Factors
Ford’s financial condition is getting worse every year. The only significant strength is that Ford still has many assets can be sell. Ford is weakness in operating and it cause massive operating cost. Ford is continuing to solve it by selling off its assets and lay off employees. Ford has damaged its reputation. Before Ford was success in its brand name and now is also fail on its brand name. New fuel technology may create a competitive advantage. In short-term Ford can gain profit but in long-term Ford still need to strive in product design.
Identification of Strategic Issues
Ford has problem in reducing operating cost. Ford has a lot of top managers and employees. The huge wages and salaries is an important issue. Ford does not have a significant competitive advantage. Ford has a bad brand image to people
Strategic Alternatives
Ford has implement many programs to solve financial problems and tried to create a good reputation on film and TV. The financial part is still not working because Ford just selling off its unprofitable division and then invest it in another profitable division. It did not help Ford brand to reduce operating cost. About cre ...